India's stock market experienced a mixed year in 2025, with the auto and financial sectors showing strength due to GST cuts and attractive valuations. Improved domestic consumption also provided support. However, muted earnings growth, a depreciating rupee influenced by U.S. tariffs, and foreign portfolio investor outflows of $17.7 billion presented significant headwinds. Widening trade deficits and a projected current account deficit of 1.5% of GDP by FY2027 added to market challenges.